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  • Avatar RosieQ 
    Participant
    Status: Physician
    Posts: 182
    Joined: 06/03/2017

    Be sure to check your electric rate plan before a potential Tesla (or other EV) purchase. We have a unique situation where we are in a semi rural area and use of a lot of electric. We also have solar power and PG&E will buy back solar power with a credit for peak/off peak that corresponds to the time for peak/off peak on your rate plan. They just introduced a new rate plan for EV charging putting lower off peak pricing (good) at $0.16/kw which is affordable but a bit above the national average. However they extended the off peak time from 12am all the way out to 3pm (bad), so they credit your solar power generation back to you at off peak rates all the way until 3pm, so most of the daylight solar hours would then get off peak credits. Our current estimated anual electric bill with solar is around $645. Switching to the EV2-A charging plan WITHOUT actually charging increases price to $1255 for increase of $610 just by bad arbitrage between solar generation and buy back at peak vs off peak. Then add in the EV charging for 20,000 miles driving a year and price goes up to $2565 year. That’s $1920 extra per year or around $160 per month…pretty much exactly what I would pay for gas. None of this crazy money savings that is advertised due to the solar power penalty. To come out ahead we would need to invest around $25k more in both extra panels and then add a battery storage to minimize peak power consumption in the late afternoon and evenings. Alternatively pay around $2k to install a second power meter and then pay $0.16 at night, but still several thousand in extra outlay negating a lot of the savings of EV charging compared to gas.

     

    With CA off peak EV plan pricing now above $0.16, plus other extra penalties I’m just not seeing how you get the Tesla advertized savings at all which they compare to $0.13/kwh. It’s still a blast to drive with amazing performance, and I’ll still likely get one in a few months but that’s because I can afford it and not because I think I’ll save money.

    in reply to: Tesla #253981 Reply
    Avatar RosieQ 
    Participant
    Status: Physician
    Posts: 182
    Joined: 06/03/2017

    What do you all think about the statement of “I might pay $x,000 for taxes but my CPA saves me at least that much in taxes each year so it’s totally worth it”. I figure that turbo tax catches all the usual stuff (salary-pretax retirement contributions HSA etc minus practice expenses -> tax bill calculated. What are these extra tricks or extra value added? Once I get all my expenses and paperwork together which I need to do regardless of who does my taxes it’s only about 2 hours or less on TurboTax to get it all together.

    Avatar RosieQ 
    Participant
    Status: Physician
    Posts: 182
    Joined: 06/03/2017

    Thanks again for the great responses. The fancy house is appealing however the process of paying for it is trying. The process of paying for the remodel and architect fees for the new house etc has cost 5-10k a month out of cash flow and has felt like a big stress to me as I’m used to being much more frugal. Living more simply may be the better option at least until there is a clear need for an upgrade. On the other hand it is gratifying to look back and realize that I have been able to spend 60k or more in the past six months while maxing retirement accounts and paying for other life expenses. Being a high earner is a nice luxury sometimes.

    The property itself is 60 acres and is mainly designated agricultural space with 5 acres of buildable land. County zoning states for rural property minimal parcel size is 5 acres so we can’t split off a sub section for sale and have to do joint tenancy despite the extra space. The thousands of nearby acres are owned by another family and after the patriarch passed the heirs didn’t want the hassle of property taxes so made most of their land designated open space for the tax breaks. I’m so glad they didn’t go for condos.

    The interpersonal aspects of this are definitely uncertain but I’m as confident as one reasonably can be. But you never know. Hoping that a joint tenancy agreement can at least provide some protection against downstream issues if we do build.

    in reply to: Dream home but no liquidity of 1mil investment #242981 Reply
    Liked by Zaphod
    Avatar RosieQ 
    Participant
    Status: Physician
    Posts: 182
    Joined: 06/03/2017
    Earnest refinancing bonus

    From purely a need viewpoint, a little shuffling of accommodations would make logical sense.

    •Mom & Dad have a great 4K sqft house.
    •You and your spouse have really done a great job on that barn.
    •When you have that kid, you “need” space to expand compared to dear old Mom & Dad.
    • Swap living accommodations, I certainly won’t impact your sister.
    •If that’s unsatisfying, simply demand (kidding) the your parents build the new house or let your sister provide 1/2 of the funding.

    None of these are outrageous, it’s just everyone has preferences that grow stronger when it comes down to money.
    • At some point, someone will decide it’s time to sell. Two individuals NEVER reach that conclusion at the same time. Things get ugly when one doesn’t capitulate.

    Click to expand…

    Some good options there. Seems mean to kick my parents to the barn, but it could work from a practical standpoint. Plus a 100k remodel of the main house could make it pretty amazing and we would still come out way ahead.

    in reply to: Dream home but no liquidity of 1mil investment #242787 Reply
    Avatar RosieQ 
    Participant
    Status: Physician
    Posts: 182
    Joined: 06/03/2017

    I’d build the dream home but the land situation is concerning. You guys really need to document ahead of time what will happen when your parents pass, if you guys divorce or one of you passes, or somebody has a falling out, you guys want or need to move or family members want to sell the entire farm. You can’t have $1m ties up in something that is illiquid. Resolve all that stuff first.

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    Totally agree. That’s why we have been working with a lawyer for a rather comprehensive Joint Tenancy Agreement which should cover almost everything. It still wouldn’t be a liquid property and is a rather unusual living arrangement. At this point we are leaning towards pausing the new house design build with the extra 20k or so involved in engineering and permits and then living in the barn for 2-3 years before re-evaluating. Thanks so much for the valuable insight posted so far.

    in reply to: Dream home but no liquidity of 1mil investment #242786 Reply
    Avatar RosieQ 
    Participant
    Status: Physician
    Posts: 182
    Joined: 06/03/2017
    design a dream home on another section of the property which could be built for around 950k-1million. With permits and delays to construction this would still take 2-3 years to complete even though the design is ready. It’s 2100 sf, high end materials, amazing view etc. E 

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    I am amazed that a 2100 sq feet home in California without land costs $1M to build, even accounting for expensive materials. I thought that cost of the expense of the houses was due to the land.

    Here you can build the same house with high end materials for 350-400K, land not included.

     

     

    Click to expand…

    Are you sure your dream house is 2100 square feet?  It might be your dream house right now, but add a couple kids and as your tastes change it may not be your dream house forever.  And you are kind of locked in.

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    Some excellent points raised here. Money is one aspect, but family dynamics with an uncertain future will certainly play a role. And the 2100 sf may seem a little small to some but I think we could make it work. Keep in mind we will still have the 800 sf barn apartment as well as guest rooms in a 4000 sf house my parents live in all available for guests or angsty teenagers who want to get away from the house. It does seem crazy that costs would be so high on a $/sf. A portion of that increase in the 15% general contractors fee and their more expensive subcontractors. Shopping around and doing our own general contractor work I suspect we could get costs into the 700k+ range.

    in reply to: Dream home but no liquidity of 1mil investment #242614 Reply
    Avatar RosieQ 
    Participant
    Status: Physician
    Posts: 182
    Joined: 06/03/2017

    I guess my concern is that we have been super careful to amass a good nest egg and net worth (I found WCI in 2012 during med school years ago, thank you!) but that we would have to put in 250-500k into this building up front and would set us back from what I would consider being ahead of the game. We could still make up for it but would take another 5-10 years of hard work.

    in reply to: Dream home but no liquidity of 1mil investment #242541 Reply
    Avatar RosieQ 
    Participant
    Status: Physician
    Posts: 182
    Joined: 06/03/2017

    For clarity, is the value of the renovated barn included or excluded from the net worth? Are you going to have to liquidate any of that for a partnership buy in?

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    Not included in my net worth. Partnership buy in is sweat equity which I am paying for in spades right now.

    in reply to: Dream home but no liquidity of 1mil investment #242537 Reply
    Avatar RosieQ 
    Participant
    Status: Physician
    Posts: 182
    Joined: 06/03/2017

    2 questions:

    1) do you have other debt?

    2) you said that an 1br 800 sq ft apt would be $500k but that you could build a high end detached house with nice finishes and a view for $1M? That doesn’t really make sense.

    Click to expand…

    1) No other debt. Net worth about 550k 2+ years out of residency. About 750k including my wife.

    2) I mentioned that if I were to try and buy a similar apartment close to the amenities of our barn renovation it would cost 500k on the open market. A high end detached home would be 1M on this property but that is because there is no cost to purchase land which leads to significant savings.

    in reply to: Dream home but no liquidity of 1mil investment #242529 Reply
    Liked by MPMD
    Avatar RosieQ 
    Participant
    Status: Physician
    Posts: 182
    Joined: 06/03/2017

    … My wife and I went through and I got one prior to marriage. You can elect to stay with community property if that is the default in your state or decide that separate property applies to your marriage for future earnings. You can specify that your respective retirement accounts remain separate etc. Most importantly you can include an arbitration clause to cut out the very expensive protracted legal battles that can arise in a nasty divorce. A prenup seems worth it for that alone. …

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    If you are an intelligent person who earnestly believes what you listed to be enforceable (future earnings and retirement accounts separate), I would like to contact your attorney who sold you this idea. He has serious value as a guru and mentor on sales techniques and is a shining example of the capitalism in his profession.

    May you never have to cash in that meteorite insurance ticket and have its validity verified, sir

     

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    Internet research and both of our respective lawyers who have experience in family law seem to think that you can override California community property with a prenup, so long as it isn’t unconscionable. In fact, only Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin have community property laws as a default. All other states follow equitable distribution laws so legal precedent has not stated that favoring an Oregon standard instead of CA is ridiculous and unenforcable. I’m curious how IntensiveCareBear is so confident about your assertion with a medical background when a little internet searching and several specialist lawyers disagree with you. Liking your own posts doesn’t count as a second opinion. I do recommend the op get some actual professional legal advice about what may or may not be enforceable based on what you would like to have included. I recommend going to a site like LegalZoom or Findlaw to go through their questionnaire with your spouse and see some of the common decision branch points. Then you can take some of those thoughts to a professional for final adjustments based on local specifics. I found that this mutual process was painless rather than going to your respective lawyer and working something up then dropping it on your fiance with a “sign this” statement- can be more confrontational. Prenups do have a lot more weight than post nup agreements, so if you think you want one, now is the time.

    in reply to: do i need a prenuptial agreement? #232397 Reply
    Avatar RosieQ 
    Participant
    Status: Physician
    Posts: 182
    Joined: 06/03/2017

    I recommend it, just be aware it can be a rather expensive document to arrange. Lots of mistaken advice so far in this thread I believe. My wife and I went through and I got one prior to marriage. You can elect to stay with community property if that is the default in your state or decide that separate property applies to your marriage for future earnings. You can specify that your respective retirement accounts remain separate etc. Most importantly you can include an arbitration clause to cut out the very expensive protracted legal battles that can arise in a nasty divorce. A prenup seems worth it for that alone. Two things that can’t be included are child custody stipulations and anything later found to be “unconscionable” at the time of a court decision. Talk it through with your fiancé about what they think would be fair, what happens if someone cuts back to take care of kids etc. A good prenup will protect both people and can be the basis for a good productive discussion and the ability to have this discussion in the first place bodes well for maturity going into the marriage in my opinion.

    in reply to: do i need a prenuptial agreement? #232300 Reply
    Avatar RosieQ 
    Participant
    Status: Physician
    Posts: 182
    Joined: 06/03/2017

    If you’re in REPAYE, it doesn’t matter how you file taxes. Your payments will be the same.

    Why not refinance ?

    Click to expand…

    Agreed. REPAYE is based on both couples income put together. You could always switch to IBR which is 15% of your discretionary income (higher % than REPAYE) but does allow you to do married filing separately. In some situations that can end up being advantageous. The only reason to try and stick to the lowest payment possible would be to keep making qualified payments towards PSLF. Otherwise you should refinance to a lower rate through the private sector since the interest rates with federal loans is borderline predatory for a good credit risk physician.

    One thing that I have always wondered is both the ethics and legality of the timeframe for “updating your loan servicer” with changes in income. Should you update income the minute you get a raise? What about if bonus payments are temporarily higher than they have been for the last few quarters? What about when you get married, should you send something in the next day? My wife and I have been waiting for after tax season the year after the timeframe referenced for loan repayment calculations (ie we updated wife’s loans this June after everything was processed from 2018 taxes completed in April 2019). So there was a delay and she has been making a higher income, and we got married in the interim so this delay was to our benefit. This seems to be a reasonably common practice, and can lead to lower payments, especially as you can notify your servicer immediately if there has been a drop in income (disability, changes jobs etc). I only hope that there isn’t some forensic accounting with IRS when she applies for PSLF down the road.

    For your unemployed period I recommend you update your REPAYE income as $0 for 2 months. That way your payments go to $0, and government covers some interest. I believe that you should NEVER go into forbearance with current programs available.

    in reply to: Newly Married – Help! #232133 Reply
    Avatar RosieQ 
    Participant
    Status: Physician
    Posts: 182
    Joined: 06/03/2017

    Increase your DI to what you need and then drop the future purchase increase option rider. I feel like once you hit full attending income this becomes a needless addition to your premium unless you feel like you will need more coverage that you don’t qualify for at the moment. You could likely buy up on your spouse policy and drop the future purchase option for at least some additional coverage at no additional cost.

    I think it’s nice to at least have some DI, and you have reasonable amounts for each person so I don’t see much need to increase much. With high income and a spousal income you technically don’t seem to need insurance at all assuming things stay as they are. You just need insurance for 1) In case you get both disabled and divorced 2) Both people get disabled at the same time or 3) You want to have a bit of “your own money” in the case of disability so you aren’t too dependent on your spouse support. All of the above seem like lower likelihood events with less risk than a single earner with stay at home spouse and multiple kids. I think your current mid range coverage sounds adequate to me.

    in reply to: How much Disability insurance #231530 Reply
    Avatar RosieQ 
    Participant
    Status: Physician
    Posts: 182
    Joined: 06/03/2017

    Recent complicated diverticulitis with small perforation was admitted. Wealthy patient, prior hospital donor. Our CEO came in at night and sat by the bedside for hours for initial ED workup until pt went to bed on the floor. Care was actually standard and uncomplicated, both the patient and CEO are nice.  But man that seemed awkward for the patient/family.

    in reply to: VIP syndrome, treating colleagues, staff etc. #231079 Reply
    Liked by Tim, Anne
    Avatar RosieQ 
    Participant
    Status: Physician
    Posts: 182
    Joined: 06/03/2017

    If salaries are cut enough some people won’t continue to practice medicine and some won’t go into it in the first place. However I suspect that similar to dentistry that if salaries have a stronger downward pressure and you are looking at a 100k associate position and a hard road to make 200-300k there will still be a tremendous line of people waiting to go to USC or Tufts dental school and take out 500k in loans. I don’t think I would do it, but at 20-40% less income than physicians and school debt that is similar or worse to the MD route we still have plenty of dentists. Now look at veterinarians. I have no idea how that financial math works but we have plenty available too. I do admit from my selfish perspective, working in a suburban hospital with a relatively low volume and excellent private payor mix that we would be decimated by a change to Medicare for all. And my income would likely decrease substantially.

    in reply to: Debate last night FREAKED my out- Medicare for ALL? #226101 Reply
    Liked by EndoRobert
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